1204.02

Prepayment Option 1 – Declining Prepayment Premium Schedule

Requirements

For a voluntary prepayment after the lockout period using Prepayment Option 1, you must use Schedule 4 of the Multifamily Loan and Security Agreement - Prepayment Premium Schedule (Graduated Prepayment Premium – ARM, SARM) (Form 6104.10) with the applicable Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. percentage listed in this table.

Loan Year

5-Year Term

7-Year Term

10-Year Term

1 (Locked Out)1

N/A

N/A

N/A

2

4%

4%

4%

3

3%

3%

3%

4

2%

2%

2%

5

1%

1%

1%

6

N/A

1%

1%

7

N/A

1%

1%

8

N/A

N/A

1%

9

N/A

N/A

1%

10

N/A

N/A

1%

1 During the lockout period, the Borrower cannot voluntarily prepay the SARM Loan.  If the SARM Loan is accelerated during the lockout period, the Borrower owes a 5% Prepayment Premium.